Builders FirstSource (BLDR) Q4 2025 earnings summary

Executive summary

• FY 2025 net sales were $15.2 billion, down 7.4% year-over-year, with net income of $435 million, a 59.6% decrease from the prior year.

• Adjusted EBITDA was $1.6 billion, down 32%, and adjusted diluted EPS was $6.89, down 40.4% year-over-year.

• Maintained gross margin above 30% and EBITDA margin above 10% in 2025 despite weak housing starts, affordability challenges, and commodity price deflation.

• Executed $100 million in cost actions, including facility consolidations and SG&A reductions, to align with market conditions.

• Strategic focus on organic growth, value-added products, digital innovation, and disciplined capital allocation.

Financial highlights

• Q4 2025 net sales were $3.36 billion, down 12.1% year-over-year, with gross profit of $1 billion and gross margin at 29.8%.

• Q4 adjusted EBITDA was $275 million, down 44% year-over-year; adjusted EBITDA margin was 8.2%.

• Adjusted EPS for Q4 was $1.12, a 52% decrease year-over-year.

• Full-year free cash flow was $874 million, with a free cash flow yield of approximately 8%.

• Value-added products comprised 47.7% of FY 2025 net sales.

Outlook and guidance

• 2026 net sales guidance: $14.8–$15.8 billion; adjusted EBITDA: $1.3–$1.7 billion; adjusted EBITDA margin: 8.8%–10.8%.

• Full-year gross margin expected between 28.5%–30%; free cash flow guidance of ~$500 million.

• Capital expenditures for 2026 projected at $250–$300 million.

• Assumes flat single-family and multi-family starts, 1% growth in repair/remodel, and $365–$385/mbf commodity prices.

• Q1 2026 net sales expected at $3–$3.3 billion; adjusted EBITDA $175–$225 million, with a heavier second-half contribution anticipated.